KATHMANDU: Welcome to Nepal News’ Evening Economic Brief—your go-to source on key financial updates in Nepal. Stay informed with concise insights on market trends, economic indicators, and policy shifts. Here are today’s top economic news highlights.

All Indices Rise on Thursday as NEPSE Surges Over 18 Points

On the last trading day of the week, all indices in the Nepal Stock Exchange (NEPSE) recorded gains. The NEPSE index increased by 18.30 points compared to the previous day, closing at 2,850. Throughout the trading session, the market remained in the green. At one point, around 2:04 PM, the NEPSE index peaked at 2,861 points. However, a slight selling pressure toward the end of the session had a minor impact on the overall index level. A total of 187 companies saw their share prices rise on Thursday, while 62 declined. Thursday’s turnover reached Rs 8.53 billion, up from Rs 7.63 billion the day before.

Nepal’s Public Debt Expected to Reach Rs 2.94 Trillion by Fiscal Year-End

Nepal’s total public debt is projected to reach Rs 2.942 trillion by the end of the current fiscal year. According to the Public Debt Management Office, by the end of mid-July of FY 2025/26, domestic debt will constitute 46.85% of the total public debt, while foreign debt will account for 53.15%. Among domestic debt instruments, treasury bills will make up 12.2%, development bonds 33.98%, citizen saving certificates 0.49%, foreign employment saving certificates 0.04%, and IMF bonds 0.13% of the total debt portfolio.

Risk of Large Shareholders Escaping Debt Obligations Under Current NRB Loan Rule

According to the Nepal Rastra Bank’s (NRB) provisions, the loan-to-value (LTV) ratio for loans against share pledges is currently 70 percent. Based on the average market trading price over 180 days, banks can offer up to 70 percent of that value as a loan against the pledged shares. If a company’s ordinary shares have a current market value of Rs 1,000 and an individual founder who bought 100,000 shares for Rs 10 million now holds shares worth Rs 100 million, they can borrow up to Rs 70 million from a bank under this rule.

Government Spends Rs 362.59 Billion Annually on Loan Repayments

Amid growing public debt, the government spent approximately Rs 362.59 billion last fiscal year (2024/25) on repaying principal and interest on internal and external loans. With rising debt obligations, financial pressure has intensified after Nepal’s key development partner—the World Bank—doubled its interest rates on loans.

Insurance Authority Discusses Hydropower Insurance Issues with IPPAN and Reinsurers

The Nepal Insurance Authority on Thursday held a discussion with the Independent Power Producers’ Association Nepal (IPPAN), Nepal Insurers’ Association, and reinsurance companies on current issues related to insurance in the hydropower sector. The meeting focused on identifying and addressing the challenges and problems seen in hydropower insurance. Topics raised by IPPAN, along with the perspectives of the insurers’ association and reinsurers, were deliberated in detail with the aim of finding practical solutions.

NRB Earns Rs 90 Billion in Foreign Currency Investments

Nepal Rastra Bank earned Rs 90 billion from foreign currency investments in fiscal year 2024/25.
This is an increase of approximately Rs 12 billion compared to the previous year, when earnings were Rs 78.16 billion. The rise is attributed to record-high foreign exchange reserves.

Asset Management Company Converted to Public Limited

The Asset Management Company has been converted into a public limited company. The decision was made in a special general meeting held on May 5, 2025, which also approved capital expansion. Following the decision by the Office of the Company Registrar, the company is now officially a public limited firm. Currently, it is chaired by former banker and ex-chair of the Insurance Board Devendra Pratap Shah, and managed by former banker and insurance chief Ramesh Kumar Bhattarai.

SEBON to Explore Global Depository Receipts as Listing Option

Until a few years ago, the Securities Board of Nepal (SEBON) had plans to list Nepali companies on foreign stock exchanges. However, no progress was made. Now, SEBON is considering alternatives and will study the possibility of issuing Global Depository Receipts (GDRs) as an alternative route for international listing.

Insider Trading Rampant Before Financial Reports Are Published

Financial indicators, bonus share plans, rights issues, and dividend announcements often leak into the market before official publication, leading to widespread insider trading. A specific group purchases shares before such information becomes public and exits with 15–20 percent profits when the announcement is made. These leaks are often traced to company board members or management teams. Senior executives and board members are legally barred from trading their company’s shares for one year after stepping down, but many use family members’ names to bypass this restriction.

Subsidized Festival Market to Begin in Mid-September

The government will operate subsidized shops targeting upcoming festivals starting mid-September. The Food Management and Trading Company and Salt Trading Corporation under the Ministry of Industry have started preparations. The ministry has allocated around Rs 40 million for these shops. Specifically, Rs 38.699 million has been allocated for subsidized markets nationwide.

Substandard Lentils Imported from India Sent Back

The Department of Food Technology and Quality Control returned low-quality lentils imported from India for commercial purposes. New Shree Betal Traders of Kanchanpur had imported 2,920 kg of red lentils and 2,250 kg of black gram, which were found substandard after testing and were returned to India.

Nepal Telecom Warns Against SIM Overpricing

Nepal Telecom has fixed the price of prepaid SIM cards at NPR 90 and warned that selling them at higher rates is illegal. In a public notice, the company has urged customers to report violations to the nearest Telecom office, District Police, or District Administration Office. The move aims to curb overpricing by unauthorized vendors and ensure fair access to telecom services. Legal action will be taken against those breaching the price regulation.

Lumpy Skin Disease Affects 26,632 Cattle Across 25 Districts

Lumpy skin disease has spread to 25 districts, infecting 26,632 cattle and causing 816 deaths, according to the Department of Livestock Services. Farmers have already suffered losses worth Rs 1.3 billion, with Koshi Province alone accounting for Rs 1.01 billion in damages. The disease has also been reported in Bagmati, Lumbini, Madhesh, Karnali, and Gandaki Provinces.

Investment Secured for 341MW Budhi Gandaki Hydropower Project

The largest private-sector hydropower project in Nepal, the 341MW semi-reservoir Budhi Gandaki project, has secured investment. Led by Nepal Investment Mega Bank, 10 banks and financial institutions will invest. These include 8 commercial banks, Nepal Infrastructure Bank, and Hydroelectricity Investment and Development Company. Sahas Urja, the main promoter, has confirmed that some individual investors will also be involved.

Sunkoshi-Marin Dam Construction Severely Delayed

Separate tenders were invited for tunnel and dam construction of the Sunkoshi-Marin Diversion Multipurpose Project. While tunnel construction was completed 15 months ago, dam construction has been progressing very slowly. Project officials blamed the construction company’s delays and inaction for the lack of progress.

73,000 Cubic Meters of Concrete Completed in Tanahun Hydropower Main Dam

In Rishing Rural Municipality-1 of Tanahun, 73,000 cubic meters of concrete have been poured for the 140MW Tanahun Hydropower Project’s main dam. The total requirement is about 900,000 cubic meters. Work began on March 20, 2025. Under Package-1 of the project, water from the Seti River is being diverted via Vyas Municipality-5 and Rishing Rural Municipality-1 for dam construction.

Karnali Province Issues Budget Implementation Guidelines

To ensure transparent and accountable spending, the Karnali Province government has issued guidelines with conditions and installments for grants transferred to local bodies in the current fiscal year 2025/26. The Ministry of Economic Affairs and Planning sent a 27-point guideline to the chief administrative officers of all 79 local units in the province.

Karnali Province Reports Highest Power Loss Despite Low Electrification

Karnali Province, which has the lowest electrification rate, reported the highest power loss at 21.74 percent last fiscal year, according to the Nepal Electricity Authority. This loss—measured as the gap between electricity produced and electricity billed to customers—is due to outdated infrastructure, tree interference, long distribution lines, and power theft.

Baglung Sees Rising Cases of Fraud, Injury, and Deaths Among Migrant Workers

According to Min Upadhyay, head of the Migrant Resource Center in Baglung, the number of incidents involving fraud, injury, death, and imprisonment of foreign workers is rising.
Of 15 registered complaints—including withheld passports, changed jobs, wages, and companies—10 have been resolved. Through coordination with the Department of Consular Services and the District Administration Office, Rs 2.13 million in compensation has been distributed to victims.

Kailash–Mansarovar Route Reopens, Indian Pilgrims Surge

Following the reopening of the Kailash–Mansarovar route via Humla, there has been a surge in Indian pilgrims. On Wednesday alone, 13 flights landed at Simikot Airport. Flight frequency ranges from 5 to 82 daily, with five helicopters on standby. Since mid-April, around 3,000 Indians have already visited Mansarovar. Hotel bookings are confirmed until September. So far, 2,998 pilgrims have completed the Mansarovar visit, according to the Humla District Police Office.

Kumari Bank’s Profit Crosses Rs 2 Billion

Kumari Bank reported a net profit of Rs 2.11 billion for the fiscal year 2024/25. This is over 450 times higher than the previous year’s profit of just Rs 4.6 million. The sharp increase in profit is primarily attributed to a decrease in impairment charges compared to last year. Additionally, the bank saw moderate growth in profits from its core business operations.

Gold Price Stable, Silver Rises in Nepali Market

The price of gold remained stable in the Nepali market on Thursday, while silver saw an increase. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold traded at Rs 198,400 per tola (11.66 grams) on both Wednesday and Thursday. Meanwhile, the price of silver rose by Rs 10.